Kontoor Brands, the parent company of denim brands Lee and Wrangler, announced a dip in revenues for Q1 2023. The company reported a 2% decrease in revenue to $667 million, with the international market weighing down the overall results due to the ongoing impact of Covid-policy changes in China.

International revenues fell by 14% to $149 million, while U.S. revenue for the quarter was $518 million, increasing by 2% over the same period in the previous year.

The results were mixed for the individual brands, with global revenue for the Wrangler brand growing by 3% to $423 million, while Lee brand revenues fell by 9% to $241 million. Despite the challenges, Kontoor Brands expressed confidence in the company's diversified growth strategy and its ability to generate sustained, profitable growth over time. Company also reaffirmed the 2023 outlook despite macroeconomic pressures that are expected to weigh on consumer demand in the second half of the year.

Looking ahead, Kontoor Brands expects fiscal 2023 revenue to increase at a low-single-digit percentage over 2022, with relatively balanced performances in the first and second half of the year.

Guess, the American fashion brand, has announced the appointment of Markus Neubrand as its new chief financial officer, effective August 1, 2023.

Neubrand, currently the group CFO of MCM Worldwide, brings with him two decades of experience in finance and operations in the fashion industry, including 17 years at Hugo Boss.

He will succeed Dennis Secor, who will remain with the company as executive vice president through March 31, 2024, to ensure a smooth transition.

Additionally, Fabrice Benarouche has been promoted to senior vice president finance, investor relations, and chief accounting officer, effective immediately. Carlos Alberini, CEO of Guess, praised Neubrand's leadership, operational, and strategy skills, and recognized Benarouche's contributions to the company.

The situation in Myanmar continues to worsen for the people and workers, more than two years after the military coup in February 2021. With the recent May Day celebration, the call for workers' rights and against violations of human rights is louder than ever. However, under the military dictatorship in Myanmar, human rights due diligence is impossible, and companies must plan a responsible exit from the country.

IndustriALL, a global union federation, supported a call by Myanmar unions for all multinational companies operating in the country to divest after the military coup. Companies that maintain operations in Myanmar are indirectly funding the military's war on its own people, contributing to a growing humanitarian crisis. The military has recently used airstrikes, killing over 100 people.

Wage exploitation, forced labor, and harassment against women are increasing, and violations against workers are becoming more frequent. The EU-funded MADE in Myanmar project, which aims to support the garment manufacturing sector by replacing unions with employer-selected "workers' representatives," is concerning.

Employers take advantage of the political situation to deprive workers of their rights, allowing serious human rights and labor rights violations to continue in Myanmar while helping the military gain legitimacy.

After recovering from the impact of the COVID-19 pandemic in 2021, the global apparel industry faced new difficulties in 2022 due to high inflation. The cost of production increased, and consumer confidence dropped, resulting in a slight decrease in revenue to 1.53 trillion U.S. dollars in 2022. However, the market is expected to rebound in 2023, with revenue forecasted to increase to more than 1.7 trillion dollars, as per analysis of statistics by Statista.

The women’s apparel market generates significantly more revenue than men’s or children’s apparel, with women's apparel alone generating about 163 billion dollars in revenue in the US.

The United States and China are the leading countries in the apparel market, with the highest demand for clothing. China topped the rankings for the highest value of apparel exports in 2021, while the US was second to the EU in the value of apparel imports.

The apparel market has several divisions, including the second-hand apparel industry, which is projected to grow as consumers demand more environmentally conscious options.

The luxury market is also a significant player, expected to double in size from 2022 to 2028.

Nordstrom, the American luxury department store chain, has announced that it will be closing both of its downtown San Francisco locations, citing the challenges of operating in the current environment.

The closure of the San Francisco Centre Nordstrom store and the Market Street Rack store comes amid a rash of retail thefts by brazen thieves, which has impacted retailers and businesses in the downtown area.

The company is not renewing its lease for either location due to the "dynamics" of the downtown San Francisco market, which has seen a significant decline in foot traffic and safety concerns for customers, retailers, and employees. The last day of business for the Market Street Rack store will be July 1, and the San Francisco Centre location will close at the end of August.

The closures have underscored the deteriorating situation in Downtown San Francisco, according to the Westfield mall, where the downtown Nordstrom store is located. A mall spokesperson stated that a growing number of retailers and businesses are leaving the area due to the unsafe conditions, which are preventing economic recovery of the area.

The statement further added that the mall has urged city leaders to find solutions to the key issues and lack of enforcement.

As it gears up for an initial public offering, fast fashion giant Shein is aiming to counter criticisms over environmental waste, intellectual property violations, and the retailer's links to China.

The online company is investing millions in initiatives to address the complaints and is positioning itself as a retail heavyweight with which rivals will need to contend.

Shein is one of the most downloaded shopping apps and is a favourite of Gen Z, selling clothes such as mesh dresses and two-piece swimsuits for less than $9.

The company recently hosted a day-long summit for designers and has launched an initiative to fund and hire artists to create clothing lines. Its "Shein X" scheme offers independent designers a budget, pays production costs and markets their wares on its site.

The Tamil Nadu government has requested the Centre to allow more time for the textile industry to comply with quality control orders (QCOs) for the importation of viscose and polyester fibres.

The government has suggested that the implementation of QCOs should be delayed until the Bureau of Indian Standards (BIS) resolves all outstanding applications submitted by importers seeking QCOs to adhere to quality standards. The state administration has also requested an exemption for filament yarn and artificial fibres, such as bamboo fibres, made outside of India from QCOs.

Delay in quality control orders puts textile industry at risk

The industry has claimed that a large number of applications from foreign suppliers are still awaiting examination and clearance by BIS, which can only happen after BIS officials have visited the applicants’ production facilities in their home countries. Even if these suppliers meet the QCOs requirements, the importation of these fibres cannot begin until the BIS inspectors have completed all the necessary steps and approved the applications. As a result, many textile producers who have already placed orders and have shipments in transit are likely to face significant business losses.

MSME textile businesses struggle with expensive BIS certification requirement

Tamil Nadu Chief Minister MK Stalin highlighted that if the import of necessary high-quality fibres is delayed, domestic producers of value-added goods would be forced to reduce their standards of quality and eventually lose customers. The textile industry, which is primarily composed of MSME businesses, has been mandated by the authorities to establish testing infrastructure to achieve BIS certification, which is an expensive and unfeasible requirement for many small firms.

Moreover, the fashion industry works on cycles scheduled more than six months in advance, and any delay in implementation deadlines could impede several ongoing processes. Additionally, sustainable fibres with distinct properties have been developed in viscose and polyester yarns, which could preclude the application of general QCOs. The government sources claim that bamboo viscose fibre, which is in high demand in the export market due to its anti-bacterial and anti-microbial properties, currently lacks a BIS standard.

Implementation delays in QCOs for man-made and viscose fibres cause of worry

The textile industry has expressed concerns about BIS's implementation of mandatory certification through various QCOs for various types of man-made and viscose fibres. They worry that the QCOs issued by the textile ministry on viscose staple fibres were only given one month to be implemented, and an additional two months were added to make it effective beginning March 29, 2023.

The Polyester Stable Fibre QCO will go into effect on April 3, 2023, according to the Ministry of Chemicals and Fertilisers, while QCOs for polyester fully drawn yarn (FDY), polyester partially orientated yarn (POY), polyester industrial yarn (IDY), and 100% polyester spun grey and white yarn will be effective from July 3, 2023.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Worldex India have partnered to boost the textile and apparel sector by bringing together suppliers and exporters of raw materials, chemicals, machinery, textiles, and apparel through trade shows.

The move aims to take advantage of the potential for mutual trade between the two countries. While Bangladesh hopes to sustain its growth in high-value-added apparel, India seeks to enhance its textile exports. Given their geographical proximity and complementary demand-supply match, both nations stand to benefit from this partnership. By increasing business interactions, BGMEA and Worldex India aim to establish a strong platform for a more robust trade relationship between Bangladesh and India in the coming years.

According to data from the World Bank, Bangladesh's apparel exports amounted to $26.39 billion in 2020, while India's textile exports were valued at $26.8 billion. This indicates that both countries are key players in the global textile and apparel industry. Moreover, the two nations share a long-standing trade relationship, with India being Bangladesh's largest trading partner, accounting for 10.5% of its total trade in the fiscal year 2019-2020.

The collaboration between BGMEA and Worldex India could open up new avenues for trade and investment in the textile and apparel sector. Trade shows offer an opportunity for businesses from both countries to connect and explore potential partnerships and collaborations.

Additionally, Bangladesh's focus on high-value-added apparel aligns with its efforts to move up the value chain in the sector. The collaboration with India, which boasts strength in raw materials and chemicals, could support Bangladesh in producing more sophisticated and high-quality garments.

World India is organizer of Intex South Asia shows in India, Bangladesh Intex show is scheduled to be held between June 22-24 at ICCB Dhaka.

Is the most successful fashion app Shein going the TikTok way? The U.S.-China Economic and Security Review Commission (USCC) just filed in a report about Chinese fashion app Shein and Temu in relation to data risk, which the Chinese view as retaliatory tactics by the federal government of the US targeting Chinese apps that enjoy worldwide popularity. According to market researcher Bloomberg Second Measure, Shein accounted for 50 per cent of all fast fashion sales in the US as of November 2022, ahead of established brands like H&M at 16 per cent and Zara with 13 per cent. Although Shein is now based in Singapore, the relocation of its headquarters does not mean anything to the US authorities as Shein is 100 per cent Chinese owned as is Temu, the US-based online marketplace owned by the Chinese holding company PDD. The USCC report also alleged data security violations as well as infringement of intellectual property rights. Recently, short video app TikTok, owned by Beijing-based ByteDance, was banned on US federal devices over data concerns.

Data protection issues

The USCC report clearly stated that Shein was forcing its customers to share their personal information in a devious manner by offering discounts and vouchers to those customers who agree to share their personal details and activities from other apps and their personal social media accounts, a practice unheard of before, according to the US authorities. A spokesperson of the USCC stated that Shein was struggling to protect user data and its parent company Zoetop has been fined $ 1.9 million by the State of New York for mishandling credit card and other personal information. On the back of personal data mismanagement, infringement of intellectual property has also been cited as an issue with many American and European labels accusing Shein of copying designs. A spokesperson of Shein in Singapore gave a public response to a leading English daily in China, “Shein takes visibility across our supply chain seriously. The firm has been providing service and goods lawfully with full respect for the communities it serves for over a decade”.

The Uyghur factor

A group of US lawmakers has called for Chinese fast fashion brand Shein to be investigated over claims that Uyghur forced labour is used to make some of the clothes it sells. Shein has completely denied the accusation to the BBC, stating it has a zero tolerance policy on forced labour. Om May 1, the group of lawmakers wrote to the Wall Street watchdog US Securities and Exchange Commission that the US government is concerned that Shein plans to sell its shares in the US which Shein has denied stating it has no plans to be listed on Wall Street. The lawmakers’ letter provides references to cotton from the US-banned Xianjiang district in China being used in Shein’s clothing, proof that Shein’s suppliers rampantly use forced labour camps as their source of workers in manufacturing units in Xianjiang and other provinces of China and any product with such illegal provenance is not supported by the USA.

Shein attempts sustainability over affordability

As the heat on the brand rises across the governments of USA and Europe, and western customers are giving sustainability a thought over affordability, Shein has started communicating its contribution to the fashion sector in more ways than one. Last year, Shein pledged that by 2030, its production lines would have decreased GHG emissions by a quarter of the current volume and in 2022 alone it saved 69.6 tonnes of single-use plastic to prevent 142 tonnes of GHG emissions. Additionally, Shein launched a resell platform in the US in Octoner 2022, requesting consumers to resell Shein products rather than discard them.

The time is always ripe for upgrading wardrobes every season if the wallet permits as the saying goes: fashion is like eating and you shouldn’t stick to the same menu. Urban dressing has now become all about creating your unique visual style which is a reflection of attitude and personality and it’s not always about brands. The fashion sector has once again become profitable post-Covid one with a projected market volume of $336.80 bn in 2023 with most of the revenue generated in China.

Customized top-wear to be most popular

Globally the number of fashion-conscious consumers is expected to touch 3.38 billion by 2027. For them a style quotient is a necessary statement. A recent study by Vistaprint, a custom printing and marketing company done in collaboration with OnePoll, a public relation and consumer insight expert company, listened what’s hot and what’s for summer of2023. The poll of over 2,000 consumers across all age groups in the US found out about their favorite customized T-shirt collections, the designs they love and those they avoid.

Based on the survey, fashion brand consultant Clare Alexander compiled a list of what is trending in customized T-shirts and also created a useful guide to design and print custom apparel. As per this, top wear such as T-shirts are the most popular item of customized clothing with over 51 per cent consumers owning them.

What’s hot and what’s in summer 2023

In customized apparel, garments that feature smart and bold quotes (32 per cent), bright colours (31 per cent) or logos on the front (31 per cent), are trending for both men and women. However, the future fashion trends are showing a rise in tie-dye (35 per cent), shirt pockets (33 per cent) and portrait photography (33 per cent) for the T-shirts, shirts and tops collection for both men and women.

With a concept of less is more, it is the simple designs that are the most effective. Using bold colours that make the garment stand out and custom-designing by a professional designer instead of using clip art or stock images, is trending.

Although portrait photography is extremely popular across all age groups, it’s an absolute no-no to use someone else's image without permission and the focus is to keep it simple without too many graphics or details. The survey also found most consumers are staying away from wearing T-shirts that use swear words (38 per cent), a photo of themselves (34 per cent), pictures of strangers (33 per cent), well-known phrases or slogans (33 per cent), animal prints (29 per cent) and innuendos (29 per cent). The focus should always be to stay clear of offensive language, graphics, or images and also avoid using hard-to-read fonts that need to be read up close as that misses the point.

Company logos and occasion-specific customized T-shirts are bestsellers

Less is more when it comes to the younger generations and 54 per cent of Gen Z and millennials buy custom clothing to reflect their unique personalities specially at specific occasions like birthdays or any celebrations. In the corporate sector, orders for customized T-shirts help to support small businesses by all employees wearing the trademark company icon or a customized design for a special event.

The Vistaprint survey has helped businesses to focus on making their logo colours stand out and make sure no competitor has similar tones when designing their customized apparel.

“Wearing artwork on clothing is an established fashion tradition, but graphic tees are perhaps the most literal form of this. Through prints, you can express yourself in visual form by representing places you have visited, favorite tunes, television shows, films, or designers. Most graphic tees also serve as a platform for showcasing brands and expressing loyalty for the creators,” says Clare Alexander, in the press release of this survey.

In matters of style, you need to swim with the current and develop your own style statement that blends in with what is currently trending, is what will rock the summer of 2023.